| Summary: | ABSTRACT
This study examines the relationship between financial statement disclosure comprehensiveness, firm capital structure and type of stock ownership. This study uses modified Wallace index as the instrument to measure the comprehensiveness of financial disclosure, and the debt to equity ratio (DER) and the percentage of stock owned by independent (public) investor are the proxies for capital structure and ownership. The samples of this study are 32 firms listed in Jakarta Stock Exchange (JSX) in 1996.
This study finds that firms' financial leverage is positively and significantly associated with corporate financial disclosure comprehensiveness. This result shows that firms disclose more comprehensively on the increase affirms' financial leverage. Further, the type of ownership seems weakly associated with firms' disclosure comprehensiveness. A rationale for this result is the inequality of public investor bargaining power in facing management, so that the public pressure for information becomes powerless.
Small sample is one limitation of this study. Wallace index may reduce the accuracy of the result due to no weighting factor, and it seems to be too comprehensive for the research examining only several aspects affirm characteristics
Keywords: pengungkapan laporan keuangan, struktur modal, ripe kepemilikan, informasi keuangan.
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